SEZs in Suspense – Government Demands Status Report

February 21, 2007	(1 votes, average: 1 out of 5)  Loading ...
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With the controversy around the Special Economic Zones (SEZs) not abating yet, the Government has demanded a status report from the developers of 50 SEZs who have already received formal approval. The status report would furnish details of the project, based on which the Government would notify the project. Notification signals the commencement of work for developers. Accordingly, unsatisfactory progress on this front could mean revoking the formal approval by the commerce ministry.

The ministry had extended a 6 month period for developers to complete the formalities for the approved zones. The 50 SEZ developers had received formal approval from the ministry in August 2006.

The criterion for approval for a SEZ is that the developer should possess the land. Once approval is received, developers need to complete several procedures in their states. This includes providing proof of legal right and possession and a certification that the acquired land is free from legal encumbrances. Commerce ministry officials have warned that insufficient progress in this direction could lead to withdrawal of the formal approval.

Hewlett Packard, the IT major which had applied for a 60,000 sq. metre area SEZ in Bangalore have already withdrawn from the SEZ arena after receiving formal approval from the government. Hewlett Packard could not proceed with the project after the Government extended the minimum area for an IT and ITES SEZ to 100,000sq m.

Similarly, C.A. Computer Associates is not in the run anymore, after receiving approval for an IT and ITES SEZ in Hyderabad.

SEZs notified so far are 63 in number, out of 235 formally approved by the ministry. Maharashtra has 48 approved SEZs, followed by 44 in Andhra Pradesh, 28 in Karnataka and 25 in Tamil Nadu. Presently, 22 SEZs operating in the country have achieved Rs.20,000 crore of exports in 2005-06.

News Published Under:   Real Estate India, Special Economic Zones |

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